USD Update

Good morning,

There has been some movement during the US session and overnight and based on my yesterdays post and positions here is an update:

We have two positions short AUDUSD and are onside 150 pips and about 80 pips on each one. We are still holding this short position aiming to go all the way down to 0.86. If there is any signals of a reversal we will take them off. It is looking very bearish for now though. We are now waiting for a clear break of 0.89 to add more positions. AUD was trading soft late in the European session having traded back below 0.9000 and never looking back. All eyes were on AUD capex overnight which came in weaker, and saw AUD trade back down to 0.8916 (0.8956 going in).

After taking a nice profit this month on a long Cable positions it has been reversing now. It is still looking bullish to me in the long term and I would like to buy on dips. It is trading at a level now, so be patient and wait for movement to get in.

In EURUSD we have got in on the break of 1.37 as mentioned yesterday and are 50 pips onside. We are looking downwards to 1.36 and will take our profit if it doesn’t break. If it does we will add more short positions.

USDJPY has gone against us and what first looked like a risk-off movements but couldn’t break the level of 102.60 after making new highs. It seems that the orders there were not as strong as expected and it has broken down lower and we took a 20 pip loss here. It is good news though as we can now buy on the dips. Next level is at 101.660. We are waiting for that support to hold and get long there on a clear signal targeting 103 and beyond.

My advise is to wait for the news out of US today with Core Durable Goods and Unemployment Claims at 13:30 GMT and then after the US open Yellen will testify at 15:00 GMT.

Have a good day trading and good luck.